Jewelers Rally as India Sets Gold Tax That's Lower Than Expected

Government fixes rate at 3 percent, effective start of July
Shares of jeweler Titan rise to highest level ever in Mumbai

Gold chains and necklaces sit on display inside the Dwarkadas Chandumal Jewelers store in the Zaveri Bazaar area of Mumbai, India, on Tuesday, April 21, 2015. India celebrated the Akshaya Tritiya festival on Tuesday, viewed by the country's more than 900 million Hindus as a traditional day to buy precious metals.
Photographer: Dhiraj Singh/Bloomberg

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By Swansy Afonso

June 5, 2017 at 5:50 AM UTC

This article is for subscribers only.

Shares of jewelers climbed in India after the government set the rate for gold under the uniform goods and services tax below expectations, signaling a potential recovery in demand in the world’s second-largest market.

Titan Co. advanced as much as 15 percent to a record 542.50 rupees ($8.4) in Mumbai, while Tribhovandas Bhimji Zaveri Ltd. increased as much as 7 percent, Gitanjali Gems Ltd. was up 8.6 percent and PC Jeweller Ltd. gained 9.8 percent.